Loan Calculator – Estimate Monthly Payments and Interest
A general-purpose loan calculator for any fixed-rate installment loan.
About the Loan Calculator
What is the Loan Calculator?
The loan calculator is a flexible tool for any fixed-rate installment loan: auto, personal, student, or anything else repaid in equal monthly payments.
Why use this calculator?
Rather than juggling a different calculator for each loan type, one clear payment figure lets you compare offers quickly and see how rate and term drive the total cost.
How to use it
- Enter the amount borrowed.
- Enter the annual interest rate.
- Enter the term in years (decimals are allowed).
- The monthly payment and total interest appear instantly.
Formula
M = P · r(1+r)^n / ((1+r)^n − 1)
Works for any fully amortizing fixed-rate loan.
Frequently Asked Questions
What is a good interest rate for a loan?
It depends on the type of loan, your credit score, the term and current market rates. Compare the APR from several lenders rather than chasing one number.
How can I lower my monthly payment?
Choose a longer term, make a larger down payment, improve your credit score to qualify for a lower rate, or refinance later if rates fall.
What is the difference between principal and interest?
The principal is the amount you borrow. Interest is the fee charged for borrowing it, shown either as an annual rate (APR) or a periodic rate. Early payments go mostly toward interest; later payments go mostly toward principal.
How does the loan term affect my payment?
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term raises the monthly payment but costs less overall.
What is an amortization schedule?
It is a table that breaks every payment into its principal and interest portions and shows the remaining balance after each payment.
Should I make extra payments?
Extra payments reduce principal directly, which shortens the loan and cuts total interest. Many loans have no prepayment penalty, but check your agreement first.
What is APR and how is it different from the interest rate?
The interest rate applies only to the balance. The APR (annual percentage rate) also includes fees and points, so it reflects the true yearly cost of the loan.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.